Luke also pointed out that lower-priced homes are performing better over the long term, particularly in markets like Tampa and New York.
“The low-price tier of Tampa was the best performing market nationally with 5-year performance of 88%,” he said. “The New York market was the best market annually, posting a gain of 8.9%. New York’s low-tier index, which includes home values up to $533,000, helped drive that growth with 10.8% annual gains.”
Markets like New York and Atlanta have seen their low-tier indices outperform by as much as 20% and 18%, respectively, which benefits first-time buyers but also makes it more challenging for those hunting for starter homes.
The opposite is happening in California, according to the report. Higher-priced homes in California continue to see strong gains, particularly in cities like San Diego, Los Angeles, and San Francisco, where the high-price tiers, those over $1 million, outperformed the market on both 1-year and 3-year horizons.
“Regionally, the Northeast remains the best-performing market, with New York the top performer for three months running, followed by the Midwest region,” Luke added. “All markets in the Northeast and Midwest recorded an all-time high. The south reported the slowest gains regionally but included five of the seven best-performing markets since 2020.”